Tag: Economics

Suppose the equilibrium wage is £10 per hour. An effective ________ would be set at ________
Select ONE answer:

1. price ceiling; £10 per hour
2. price floor; £8 per hour
3. price floor; £12 per hour
4. price ceiling; £12 per hour

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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A price floor is …….

Select ONE answer:

1. a price below which a seller cannot legally sell.
2. a price above which a seller cannot legally sell.
3. a price that creates a surplus of the good if it is set above the equilibrium price.
4. both answers A and C are correct.

Explain what is primary market research data:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

A rent ceiling results in a shortage. As a result, which of the following do you expect?

Select ONE answer:

1. Discrimination as landlords choose their tenants, possibly based on race, age, or gender.
2. The shortage will persist as long as the ceiling is in effect.
3. A black market for apartments whereby higher rents are obtained through various other charges.
4. All of the above would be expected.

Explain how the price mechanism works in the context of potential market growth:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

When a deadweight loss occurs in a market, we can be certain that ..….

Select ONE answer:

1. the market is a monopoly.
2. there underproduction in the market.
3. the entire society experiences a loss.
4. taxes have been imposed in a market.

Explain how the price mechanism works in the context of niche markets:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the ….

Select ONE answer:

1. external benefits
2. big tradeoff
3. external cost
4. deadweight loss

Explain how the price mechanism works in the context of mass markets:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

________ can prevent the efficient allocation of resources.

Select ONE answer:

1. Competitive markets 
2. Marginal cost
3. The equilibrium price
4. Price floors

Explain how firms respond to a change in demand:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

Resource use is efficient when production is such that marginal social benefit is …….

Select ONE answer:

1. equal to the marginal social cost
2. greater than the marginal social cost
3. at its maximum value
4. less than the marginal social cost

Explain the functions of the price mechanism to allocate resources: rationing, incentives, signaling:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is a multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.